PETALING JAYA: Kulim (Malaysia) Bhd is set to return to Bursa Malaysia within two to three years in line with its plan to become a leading agribusiness player, according to its managing director Mohd Faris Adli Shukery.
“With the timing and a favourable market, we should be able to list Kulim,” he said in a virtual press conference to unveil the group’s new logo today.
In 2016, Kulim had opted for privatisation to grant it a greater flexibility and autonomy to embark on its business transformation after being listed on the local bourse in 1975.
Faris, who had taken the helm of the group in October last year, outlined that the listing plan is part of its five years transformation plan to become a leading agribusiness player in conjunction with its 88th anniversary.
“My goal is for Kulim to strengthen its position as a leading agribusiness player and establish not only a sustainable legacy but also a profitable organisation built on the right beliefs and foundation for the next generation.”
Upon assuming the role, he said one of his first tasks after joining Kulim in October last year was to streamline its strategic direction, which includes the divestment of non-core businesses and assets, striking-off dormant companies, as well as the enhancement of organisation structure.
Currently, its divestment plan is slated to be completed by next year.
With weak market sentiment due to the Covid-19 pandemic and the ensuing economic fallout, he acknowledged the group has taken this into account.
“Hopefully, based on the negotiations we’re hoping to strike up the right deal with the disposals.”
Apart from the divestment and its listing plans, the group’s transformation plans entails the initiative to expand its productions and revenue streams not only through organic growth and acquisition but also collaborations and partnerships with third parties.
He elaborated that it aims to explore a move to the downstream segment with established players in a bid to capture the margin of the entire value chain.
Kulim is also eyeing other growth areas in the agriculture sector including integrated farming and livestock management that will diversify its business revenue and contribute to the country’s food security agenda.
As for the crude palm oil (CPO), the managing director stated that it has been able to secure an average price of above RM3,500 per metric tonne (pmt) for the year.
He conceded that the group’s production does not come close when compared to the big boys in the sector, but it does have sizable offtake.
“On average, our prices are well secured while our production for this year has seen some shortage of above 10% compared to last year’s production.”
When asked about the group’s CPO price expectations for the coming year, Farid highlighted that analysts has estimated a price range of about RM2,800 and RM3,000 pmt in 2022 and it expects the price to be within that range.
In 2020, Kulim revealed its revenue grew 17% to RM1.41 billion from RM1.21 billion in 2019 driven by the company’s resilient manpower, aided by the digitalisation programme under the transformation plan.